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The retail food seasonings market, which includes
herbs, spices, salt, and pepper, was valued at £84.6m in 1998. Value
growth in 1998 has been negligible, increasing by only 0.6 percent on the 1997 market
value, although between 1994 and 1998, market value increased by 10.7 percent.
Positive influences on the market have been the considerable increase in the
range of seasonings now on offer in retail outlets, as cookery programmes and
the popularity of ethnic cuisines has stimulated interest in more herbs and
spices. Market growth, however, has been hampered by the increased consumer
demands for convenience, which have led to a rapid increase in the sales of
food products, such as ready meals and cooking sauces. At the same time, home
cooking from scratch has been declining. New product developments (NPDs) are
also adding herbs and spices to more processed foods, such as soups, cheeses,
bread, meats, fish and ready meals, and affecting the sales of herbs and spices
as cooking ingredients and seasonings.
The main sectors of the
seasonings market are: dried herbs, spices and seasonings, with 43 percent of value
sales in 1998; salt (23.8 percent); ground pepper (13.5 percent); curry powder (4 percent); fresh
herbs and spices in oil (4.6 percent); and fresh herbs (11.1 percent). Sales of dried herbs,
spices, and seasonings and curry powder have been affected by the growing
household penetration of cooking sauces. One growth area has been fresh herbs
and spices in oils, which have benefited from the demands for more convenience
foods and the willingness of consumers to use more wet products. Volume
consumption of salt is in long-term decline, although value sales growth has
been maintained through NPD, such as rock salt and sea salt.
Traditionally,
the UK has relied heavily on imported supplies for many of its spices and
peppers, and this is still the case today. In 1998, imports of spices and
peppers came to an estimated £62m, with exports at just £21m. Major
sources of supply include India, Far Eastern countries and the US. Many herbs
are still supplied from UK crops, while Cheshire remains the main
salt-producing region.
Retail sales of seasonings are dominated by one
company, McCormick (UK) PLC, through its Schwartz brand. The Schwartz brand
claimed 52 percent of all retail sales in 1998, with own-label products taking another
41 percent. The seasonings sector, however, continues to attract new entrants. Current
suppliers include some of the major food manufacturers (Tomkins, Heinz and HP
Foods), food ingredients companies, specialist herb and spice suppliers, ethnic
food companies and salt producers. Recent major new entrants include Bird's Eye
with a range of frozen herbs, herb cubes under the Knorr brand and minced
seasonings from John West Foods.
Sales growth is likely to remain modest
in the next few years as the time spent on home cooking continues to decline.
One growth market, however, will be herbs and spices in oils. Sales are
forecast to increase by 2 percent to reach £86.3m in 1999. Between 1998 and
2003, growth is forecast to be 9.7 percent at current prices, with market value
reaching £92.8m by 2003.
Text © 1999 Key Note
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Last updated by Jacob van Eldik 19th January 2000